Mainstreet Bank's Woodbury branch part of buyout
Customers of now-defunct Mainstreet Bank, including its Woodbury location, should notice little change under the new ownership of Central Bank, that firm's CEO said.
Mainstreet Bank failed and was closed Aug. 28 by the Federal Insurance Deposit Corp. Its eight branches, including in Newport and Tamarack Village in Woodbury, reopened Saturday after the chain was bought by Stillwater-based Central Bank.
Customers can continue to use Mainstreet Bank checks, ATM and debit cards and Internet banking accounts, Central Bank CEO Larry Albert said.
"They don't really have to do anything," he said.
However, Mainstreet Bank customers will not be able to do business at a Central Bank branch for perhaps six months while the two computer systems are merged. That is common in bank mergers, Albert said.
Central Bank acquired about $430 million in deposits in the transaction, said FDIC spokeswoman LaJuan Williams-Dickerson.
Albert said the acquisition made sense because the new branches complement Central Bank's existing east-metro locations in Stillwater and White Bear.
"This is a very strategic thing for us because it puts us basically in new markets up and down the east metro," Albert said, "and we really don't have any overlap."
Central Bank has no plans to change staffing at the local branches. Five employees work in Woodbury branch, four in Newport.
"It's not in our best interest to swoop in and make all kinds of changes," Albert said.
Albert said he did not know how many customers bank at the Woodbury location. An employee there referred all questions about the merger to Central Bank.